Breaking: US Launches Section 337 Investigation, May Completely Ban Product Imports

The U.S. has set its sights on this product again. This time, it’s not anti-dumping, but the even tougher “Section 337”!

Just now, on May 27, 2026, the U.S. International Trade Commission (ITC) formally instituted a major investigation—deciding to initiate a Section 337 investigation into certain coated confectionery products and components thereof, Investigation No. 337-TA-3900.

The United States is one of the world’s leading consumers and importers of sugar. In 2025, U.S. sales of confectionery products (including chocolate, non-chocolate candy, gum, etc.) reached $55 billion, with per capita annual sugar intake at about 126 grams per day, far exceeding the WHO’s recommended 25 grams per day, for a total of approximately 14 million metric tons per year.

Coated candies are those familiar products with shiny, colorful shells, such as chocolate beans, candies, chewing gums, and so on. Many Chinese factories are an important part of the global supply chain, with huge export volumes.

The quantity of coated candies and related confectionery products imported by the United States from China is relatively substantial. In 2024, China exported approximately USD 385.5 million worth of sugar and confectionery products to the United States, mainly under categories such as HS 1704, including candies, coated candies, chewing gum, and similar products.

每年几亿美元的出口额，在食品类目中不算小，中国对美农产品出口中糖果占比约3-4%。很多中国工厂是美国市场涂层巧克力豆、彩色糖果、功能性糖果的重要供应商。这次连“成分”都卷进来了，意味着上游原料、添加剂、涂层材料都可能被波及。

In recent years, affected by the Section 301 tariffs, U.S. importers have been shifting to alternative sources such as Mexico, Canada, and Europe.

This Section 337 investigation is based on allegations that imported products infringe upon U.S. intellectual property rights. On April 8, 2026, Promotion in Motion, Inc. of Park Ridge, New Jersey, filed a Section 337 complaint with the U.S. ITC, asserting that products exported to, imported into, and sold within the United States violate Section 337 by infringing U.S. Patent Nos. 9,750,267 and 11,317,640. The complainant requested that the ITC issue a limited exclusion order and a cease and desist order.

Once infringement is determined, the related products will be excluded from the U.S. market, and exporting companies could face ruin.

Why is it a Section 337 investigation?

Section 337 is the “nuclear weapon”-level tool of U.S. trade protection, mainly targeting intellectual property infringement, including patents, trademarks, copyrights, and more. Unlike ordinary anti-dumping cases, Section 337 investigations are fast, have a low threshold, and provide powerful remedies.

Section 337 investigations can result in exclusion orders and cease-and-desist orders, directly cutting off import channels. In the past, many electronic products and chemical products have fallen victim to this.

According to publicly available information, the investigation has entered formal proceedings, and the company has a window of time to submit comments and evidence.

Companies that are currently exporting or planning to export to the United States must immediately self-examine whether their products involve valid U.S. patents, especially regarding coating formulas and production processes.

Domestic factories and their supply chains, both upstream and downstream, need to be vigilant, especially regarding patents related to coating processes.